Microsoft has had 22 years to to get it done in Japan. Xbox is not a success in Japan because Microsoft frankly doesn't know what they're doing in Japan and thinks that the same things they do here will work there. No amount of legislation, especially by foreign lawmakers, is going to make Xbox an attractive proposition in Japan.

And even in the United States, the audience for those games is overwhelmingly on Switch and PlayStation, not Xbox, and that's not going to change, either.

It would be an absolute waste for Microsoft to buy a Japanese developer, and it would put that developer on borrowed time until Microsoft closes it.

So few words,  Yet so very wrong.

Well step one would be.. making one. Or partnering with one. Or not turning them down.  There are reports saying MS turned down Genshin impact while it was in development. Oh and I'm simply going to laugh at FF14 some more.

If all of Japan refuses to partner with you - aren't you the bigger problem? You have billions on billions but every Japanese company doesn't want to work with you?

And that of course ignores that Xbox DOES get games.  They got the latest released FF game. They got star ocean.  They some how got Octopath.

edit:

I found an IGN article about Xbox relationship with Japan.  Talks about how they released the Xbox early in Japan. They did marketing and did a lot of reaching out. Then in the xbox 360 they did deals like with Lost Odyssey and Blue dragon etc.

And then made every possible mistake you can make with Xbox one. For example apparently they didn't release it in Japan until TEN MONTHS later.  They also did a poor job with releasing games in Japan (so much so that people started importing from the US). And apparently did poor translations etc.

They dropped off in a huge big way.

Microsoft pays American politicians to publish false government-level statistics and tries to weaken Sony.

500.000 Dollar for US-Senatorin Maria Cantwell, by Microsoft- is that official now??!
Instead of producing their own big, legendary games - the biggest publishers and brands (Minecraft, Call of Duty, ect) are bought by Microsoft.

PS5 games that were in production at Bethesda have been canceled, according to the developer. So Microsoft lie again.
Nintendo is completely excluded from the statistics because they are too unimportant according to Microsoft. When asked why PlayStation is so much more popular in Japan, the response was cautious. The interest of the Japanese people probably doesn't matter. Microsoft also criticizes the fact that so few Japanese developers want to work with their group.

It is ironic that Microsoft accuses its competition of monopoly. Microsoft has bought more studios and ip's in recent years than Sony.
Sony could have bought maaaany the studios in the PS2 era, but didn't - because laws and rules come first in the world. the big US group Microsoft wants to take further steps to directly weaken Sony - even outside of America. In my opinion an absolute smear campaign!

Every gamer and multiplayer should shake their heads -.- It's unbelievable what a show MS pulls off

by the way, I'm curious: Is it true that the PlayStation 5 has been outselling the Xbox everywhere in the last time, worldwide? (USA, Japan/Europe/Asia)

I think you guys are reading this the wrong way. I don't think Microsoft is actually interested in the Japanese market per se. I think it is quite obvious for everybody (including Microsoft) that they don't have a chance over there, BUT they do need japanese games for the western audience who likes those games.

Now, it should also be obvious that japanese developers don't have much incentive to put their games on Xbox, so Microsoft is left with only three choices:

1) Pay japanese developers to put their games on Gamepass (which they have been doing).
2) Buy some japanese studios and/or one publisher (which I think they're planning to do).
3) Built some studios from the ground up (I know this is Sony's fans favorite, but please, let's be real, even Sony haven't don't that in ages, I mean they even shut down one studio they had over there).

What are you referring to ?

You guys think Microsoft can come in Japan and buy what they want ?